<![CDATA[Rural poverty remains a challenge for economic development; consequently, strengthening village economic institutions—such as Village-Owned Enterprises (BUMDes)—is crucial for optimizing local potential. This study aims to analyze the role of BUMDes Alam Depati Payung in local economic development in Rantau Kermas Village. A qualitative approach utilizing a case study method was employed. Data were gathered through in-depth interviews, observation, and documentation, then analyzed descriptively through the stages of data reduction, data presentation, and conclusion drawing. The results indicate that BUMDes Alam Depati Payung plays a role in local economic development by leveraging village assets, including tourism sites, customary forest management, the Serampas Coffee farming business, and a micro-hydro power plant (PLTMH). These business units contribute to community economic activity and the provision of services to meet village needs. However, several units have experienced performance declines due to management, administrative, financial, and organizational challenges—most notably the Serampas Coffee farming business, which ceased operations in 2023. These findings demonstrate that the sustainability of the BUMDes' role in local economic development depends not only on business potential but also on strengthening governance and institutional management capacity.]]>
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